Spotlight

Indian markets are expected to begin the session on a firmer footing, supported by Wall Street's overnight rebound and gains across Asian equities as easing global bond yields provide some relief to risk assets. U.S. Treasury yields retreated after Federal Reserve Governor Christopher Waller suggested that another rate hike may not be necessary if upcoming inflation data remains moderate. Even so, Friday's U.S. nonfarm payrolls report remains the week's key macro event and is expected to shape expectations for the Federal Reserve's policy path. However, with geopolitical uncertainty persisting and crude oil prices holding at elevated levels, investors may remain reluctant to carry aggressive positions into the weekend, potentially limiting upside and prompting some profit-taking at higher levels.  

Asian markets are trading higher in early trade, supported by the pullback in global bond yields and Wall Street's positive close overnight. Japan's Nikkei 225 is up around 0.5%, while South Korea's Kospi has gained more than 1%. Despite the improved global backdrop, investors remain focused on crude oil prices and developments in the Middle East, which continue to drive broader risk sentiment.

WTI crude is holding in the $91–92 per barrel range, with oil prices on track for their biggest weekly gain since July as the ongoing U.S.-Iran conflict raises the risk of further supply disruptions through the Strait of Hormuz. Elevated energy prices remain a key headwind for inflation expectations and global financial markets.

On the geopolitical front, the U.S.-Iran conflict remains elevated, with both sides continuing to exchange strikes and no clear signs of meaningful de-escalation. The prolonged uncertainty surrounding the conflict is likely to keep investors cautious, sustaining volatility across global financial markets while leaving crude oil prices highly sensitive to further developments.

Technical view

Nifty 50

Nifty 50 remains in a corrective phase, with the broader technical structure indicating continued weakness. The short- and medium-term moving averages continue to slope downward, indicating persistent selling pressure and a lack of sustained buying interest. On the upside, the 24,000–24,200 region remains the immediate resistance zone. The 24,000 psychological mark is particularly important, as the index has struggled to sustain moves above this level. A sustained move above 24,200 would be required to stabilize the near-term structure, while a decisive breakout above 24,400 would strengthen bullish momentum and signal a more meaningful recovery.
 
On the downside, 23,800 remains the immediate support zone. A decisive break below this level could intensify selling pressure and drag the index towards the 23,600 zone, which also serves as an important swing support. Momentum indicators remain weak, reinforcing the prevailing bearish undertone. Overall, the near-term technical outlook remains weak.

Bank Nifty

Bank Nifty continues to demonstrate comparatively better resilience, although the index remains vulnerable to selling pressure at higher levels. On the upside, the 57,700–57,800 region remains the immediate resistance zone, followed by the major 58,000 level. The index has repeatedly encountered selling pressure near the upper end of this range, indicating persistent supply at higher levels. A decisive and sustained breakout above 58,000 would be essential to shift the near-term sentiment decisively in favour of the bulls and could support a stronger recovery.
 
On the downside, 57,300–57,200 remains the immediate support zone. Holding above this region would help maintain the prevailing range-bound structure, while a decisive break below 57,200 could intensify selling pressure and expose the index to the 57,000–56,800 region. The broader technical structure remains range-bound, with the index continuing to consolidate within a wider trading range. Overall, the near-term technical outlook remains cautious and range-bound.